Vietnamese workers laid off as shipbuilders and owners face bankruptcy

Vietnam: Thousands of workers have lost their jobs as shipyards in the Xuan Truong district in the Nam Dinh Province.

Between 1,500 and 3,000 workers have been laid off indefinitely, the Chief of the Secretariat of the Xuan Truong District People’s Committee Doan Nang Vinh confirmed. Hundreds of incomplete ships have thus been abandoned in this district located along the Red River Delta. Deputy Head of the Xuan Truong District’s Industry and Trade Sub-Department, Ngo Doan Tho said that shipbuilders and owners were unable to secure finances and were facing bankruptcy. It generally costs over US$2.05 million to build a 2,000-tonne ship and ship owners generally borrow the majority of this figure from the banks, but they cannot afford the current interest rates.
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